Actions taxpayers should take, regarding 2021 returns
Preparing to file saves time, energy for both taxpayers and tax preparers
By: National Association of Tax Professionals
APPLETON, Wis. - Dec. 16, 2021 - PRLog -- The end of the year is upon us. After the holiday season comes another season that is celebrated far less, especially by taxpayers who have tax liabilities – tax season.
There are steps taxpayers can take, especially those who received stimulus payments or advance child tax credit tax payments, so their 2021 tax filing experience goes smoothly in 2022.
1. Gather and organize tax records
Organized records make preparing a complete and accurate return easier. While this could mean the taxpayer needs to do some legwork if they haven't been keeping/organizing records throughout the year, gathering these as soon as possible will help avoid errors that lead to processing delays that slow refunds. This includes the following:
Revenue (income) related:
Other documents, if applicable:
2. Confirm mailing and email addresses and report name changes
To ensure timely receipt of the important tax forms above, as well as a refund if applicable, taxpayers should confirm now that each employer, bank and other payers have their current mailing and email address. Address changes can be reported to the IRS by completing Form 8822, Change of Address. Legal name changes should be reported to the Social Security Administration.
3. Review withholding and make adjustments for 2022 if needed
Withholding is a big component that determined how much federal and state tax liability a taxpayer has. Changing withholding can help avoid a tax bill or let taxpayers keep more money each payday. Life changes may also be reasons to change withholding. (Think: marriage, divorce, welcoming a child or taking a second job.) A qualified tax professional can help taxpayers with decisions about withholding.
Estimated tax payments should also be considered for those who receive a substantial amount of self-employment income, investment income, taxable Social Security benefits and, in some instances, pension and annuity income. The last payment for 2021 is due Jan. 18, 2022.
For more information about NATP, visit natptax.com. To speak with an expert, email Nancy Kasten (firstname.lastname@example.org) or Samantha Strong (email@example.com).
About NATP: The National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. 23,000 members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Nancy Kasten, marketing and communications director